What is one reason online prices might be considerably lower than brick-and-mortar prices?
A) Online retailers engage in more price discrimination.
B) Brick-and-mortar retailers engage in more price discrimination.
C) Brick-and-mortar retailers may have higher costs.
D) Online retailers are more likely to have steep demand curves.

Question

Quizplus · Accepted Answer

Online retailers may have lower costs with no rent, utilities, or sales personnel. Brick-and-mortar retailers have to take these costs into account when setting their prices.

What Is One Reason Online Prices Might Be Considerably Lower